This case was developed to facilitate a negotiation exercise in connection with the formation of the partnership deals in the healthcare industry. It is based on current information, but also reflects a hypothetical situation with two businesses and a product that was all covered. The scenario in the case described is Pharmac, a major pharmaceutical company, and Respire, a small medical start-up. Pharmac and Respire began negotiations on a partnership to develop and market, finally a … Read more »

This case was developed to facilitate a negotiation exercise in connection with the formation of the partnership deals in the healthcare industry. It is based on current information, but also reflects a hypothetical situation with two businesses and a product that was all covered. The scenario in the case described is Pharmac, a major pharmaceutical company, and Respire, a small medical start-up. Pharmac and Respire began negotiations on a partnership to develop and market, finally an inhaled form of parathyroid hormone (PTH) for the treatment of osteoporosis. If successful, this product would improve the options available for the treatment of osteoporosis. It was also expected that “blockbuster” to produce, as it would make sales PTH, an already highly effective treatment option, more convenient and attractive to a large proportion of untreated patients, the injection molded were averse (injection was the standard delivery mechanism for this drug). Development of the product was highly speculative and was expected to require six to seven years due to early stage of development of the inhalable delivery system and the multi-year phase III clinical trials for the approval fracture. Pharmac had the first man-made injectable form of parathyroid hormone, called Strocal, published in 2002. However, no one had developed a non-injectable version of PTH, despite the efforts of Pharmac and other companies that spans more than a decade. Respire goal was to solve the first companies to provide this problem by developing an inhaled formulation and device through the lungs Strocal in a safe, effective and reproducible manner. Enough information provided within the housing, to enable students to negotiate terms for license fees, milestones, exclusivity provisions and participation. At the end of the OIT-81A, known information Pharmac (but not Respire) is provided. In OIT 81B, information known to Respire (but not too Pharmac) is given.
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from
Stefanos Zenios,
Robert Chess,
Gaviser Sara Leslie,
Lyn Denend
Source: Stanford Graduate School of Business
10 pages.
Release Date: 14 January 2008. Prod #: OIT81B-PDF-ENG
Negotiating partnerships in the healthcare industry (B): The Pharmac and Respire Deal HBR case solution

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